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Movie studio Metro-Goldwyn-Mayer said it is asking its secured lenders to approve a pre-packaged bankruptcy plan that would pare its debt and turn over management to the founders of Spyglass Entertainment.

MGM, saddled with some $4bn in debt from a leveraged buyout five years ago, is asking the lenders to forgive that debt in exchange for a 95% stake in the studio when it exits bankruptcy protection.

Spyglass -- the small production company behind "Star Trek" and "Get Him to the Greek" -- would merge some of its older films with MGM's library for the rest of the reorganized company.

The deadline for creditors to vote on the plan is Oct. 22.

MGM put itself up for sale several months ago but failed to garner bids suitable to creditors. Time Warner bid roughly $1.5 billion, far below what creditors are owed.